Thursday, September 29, 2011


When the market is in a downtrend, where to invest safely, this is a big question for investors. Here is a stock from FMCG sector doing well from last three years. ITC is in major uptrend on weekly and daily charts. Fundamentally it has good earning  and sales growth from last five years, and it is expected to continue in FY 12 also. Company has reported operating profit of 8533.24 cr, which is higher than around 30% from last year. In June's quarter, the company has also reported net profit of Rs 1332.72 cr  it is around 25% higher than the same quarter in the previous year. Now ITC has increased 10% of cigarette prices, which will increase an operating margin of the company. Technically stock has taken support from its 200 days moving average line on daily charts and closed over 100 days moving average line with high-volume  breakout. Stock has the immediate target  of Rs 205. Buying is advised with stop-loss of Rs 184.